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Turnaround seen in real estate market

(Originally published in the Telegraph on 8/3/08)

EDWARDSVILLE - Real
estate sales plummeted in counties across Illinois and the nation, but
the Madison County market has suffered little in comparison, and local
Realtors predict an upcoming turnaround.

Multiple Listing Service statistics indicate a 27 percent decline in
total sales in from June 2007 to June 2008 for the state of Illinois,
but Madison County has experienced only a 9 percent decrease, said Pat
Walker, chairman of the board at the Greater Gateway Association of
Realtors.

"We're not exactly setting the world on fire," but Madison County's
real estate market has not been hit as badly as Cook or even St. Clair
County, said Al Suguitan, president and CEO of the Greater Gateway
Association of Realtors.

"Everybody keeps seeing (foreclosures) in the nationwide media," he
said. "Yes, we have them. Yes, they are happening. But our foreclosures
aren't near what other areas are having across the United States."

Tari Jacobs, president of the Realtors Association of Southwestern
Illinois, said St. Clair County's overall sales fell 18.5 percent from
June 2007 to June 2008.

The neighboring counties' differing markets may have led to their uneven decline in overall sales.

"St. Clair has predominantly had a lot of new home construction.
Madison County has had a burst in probably the past five, six, eight
years of new subdivisions, but perhaps not as many as St. Clair
County," Suguitan said. "Consequently, when the new home market falls,
the percentage is going to be less in Madison County than in St. Clair
County."

A recent boost in local sales, as well as a 3.6 percent statewide
increase in June, as compared to May, may signal the end of industry
stagnation, Walker said.

"There are still buyers out there, and things are selling," she
said. "Last week, there were 21 accepted contracts at (Prudential One
Realty Centre's Edwardsville office). Everyone in this office seems to
have picked up buyers and listings."

"We had a great month in June, in particular," said Julie Lading,
vice president of Prudential One Realty Centre. "We've been seeing
quite a lot of new construction again, which is a great sign. The
agents have been busy. We have a lot of listings and several contracts
written, so I'm optimistic about our next couple months."

"Just recently, I've just experienced a huge increase of activity in
my listings," said Jenni Beck, a real estate agent at RE/MAX River Bend
in Alton. "Two of my listings have received multiple offers after
sitting on the market for months with no offers."

Realtors predict the upward trend will continue.

"I think things are really turning around. Buyers stayed back,
listened, waited, and now they are just ready to move," Beck said.
"They're taking advantage of the low interest rates, and of course, the
fact that it's a buyer's market."

"There's so much on the market that the sellers are having to get a
little more realistic with their listings," she said. "When there
weren't as many buyers or listings, there was more of a sense of
urgency with the buyers. Now, if they don't like your wall color,
they'll look at 10 other listings on the market. (Sellers are) having
to make it more appealing to the buyers."

New federal legislation also may aid the real estate market.

"Congress just passed the (Federal Housing Administration) reform,
which will bump up the amount of money you can borrow" to buy a home,
Walker said. "It increases the FHA lending maximum to $625,000, and it
will give first-time buyers a $7,500 tax credit. That certainly doesn't
hurt anything."

Those who have not bought a house in three years may qualify as first-time buyers again, Walker said.